One of the most frequently asked questions that we receive in emails is: ‘Can I make a living trading stock?” or “Should I leave my job to make trading my full-time career?” or “Should you Quit Your Job to Trade Stocks?”
It’s a fascinating idea, right? Quitting your job and working from home trading stocks. No boss, no employee, no politics, nothing. Just a laptop, an internet connection, and your skill + mindset to make money.
So, can you make living trading stocks? The straight answer to this question is, “YES, it is possible to make living trading stocks”.
In fact, we know hundreds of people who are making tons of money in their 20s and 30s by trading in stocks as per their convenience and living in a well-fashioned flat in Mumbai, Bangalore, Goa, or even their hometown depending on the choice.
There is no entry barrier to becoming a stock market trader. Anyone can enter and make a living trading in stocks. Even don’t even need any educational background to start trading. The only thing that you might require is a little capital along with passion, desire to earn, and energy.
QUICK READ: What is the difference between trading and investing here.
But wait… This can’t be so simple, Can it?
No!! There’s no shortcut in this world, my friend. Especially, not for an average person. It would be disheartening to know that every year thousands of people quit their job to become full-time traders but only a few become successful and start living their dream life. But the majority of people ‘FAIL’.
In reality, making living trading stocks is tough.
It’s just like learning any other skill. A large number of people learn guitar or a few other musical instruments. Even many of them play pretty well. But making a successful living out of it or becoming a rock star is RARE. Only a minority of the people can do it.
Here, we are not discouraging you, but just highlighting the reality. Anyways, if you are ready to put in thousands of hours of effort from your side, ready to go through multiple days of losses and guilt, and still have the energy to go to trade the next day, then you might have a chance to become a successful full-time trader.
Things that you should learn before quitting your job to trade stocks
Here are a few things that you know and get better at before deciding to quit your for making a full-time livelihood trading stocks:
- Technical Analysis
- Candlesticks trading
- Technical Indicators and Tools
- Money Management
- Trading Psychology
Along with these, also start saving money. Try to save at least Rs 1 lakh for the trading capital to start with.
Questions to ask before You Quit Your Job to Trade Stocks:
Before you quit your job to trade stocks, here are a few points that you should consider asking yourself:
1. Do you have enough education and skill set?
By education, we don’t mean a degree or qualification. What matters here is whether you have enough knowledge and experience in trading or not. For example, do you know technical analysis, candlesticks trading, technical tools and indicators, price action, options chain (for options traders), and other tools required to make an informed trading decision.
If not, then first you might need to take some time reading books, enrolling in courses, attending webinars, or browsing the internet to learn these concepts. You can learn to trade and invest from scratch at FinGrad, an initiative by Trade Brains, that offers comprehensive courses and webinars on the stock market.
2. Do you have a sound trading methodology or setup?
Before you decide to quit trading, you’ll need a proven trading methodology or set up which should be tested over time. Without a sound trading strategy and risk management skills, it’s difficult to consistently make earnings from trading. Before you quit your job to trade stocks, master a trading setup. Further, please note that just because you did well in paper trading, doesn’t mean that you’ll do similarly in the real-time scenario. Therefore, be ready for facing troubles even if you have a good trading methodology.
3. Do you have an emergency fund?
Before quitting your job, make sure that you have an emergency fund for at least one year. Stock market trading involves market risks and if you are ready to dive in completely, then having a backup fund can ease your life and reduce your stress on difficult days.
4. Are you emotionally prepared?
You know that you can’t win every trade, right? But are you ready for it emotionally? After quitting your job, you won’t receive a monthly paycheck. Your income will be based on the profits or losses on your trades. Before deciding to leave your day job to trade stocks, first- you should get emotionally ready.
Bonus: Here’s an interesting video on youtube regarding how to become a full-time stock trader which might be useful to you:
Making a full-time living trading stocks requires a lot of hard work and effort. However, this is not rocket science, and thousands of people are doing it. Therefore, it’s possible for you to quit your job to trade stocks. Nonetheless, before making your decision to quit your job to trade stocks, you should find the answers to the questions discussed in this post.
Anyways, once you have mastered the art of trading, you can build a lot of wealth and financial freedom. A successful full-time trader is his own boss and can work from anywhere.
You can now get the latest updates in the stock market on Trade Brains News and you can even use our Trade Brains Portal for fundamental analysis of your favorite stocks.
Kritesh (Tweet here) is the Founder & CEO of Trade Brains & FinGrad. He is an NSE Certified Equity Fundamental Analyst with +7 Years of Experience in Share Market Investing. Kritesh frequently writes about Share Market Investing and IPOs and publishes his personal insights on the market.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
The estimate of writing your blog post is very good. The simplest language you use when writing articles is appreciated. The information you give will prove to be of great value to me, I hope that. It is our wish that you continue to write great articles in such a future. Thanks for sharing this article. Thank you
You are welcome, Rambharat.
Great post. After reading this post I learned some new things which I don’t know till now. This post is very helpful for the people who are interested in stock market investment. Please let me know for the upcoming posts.
Really this is so much informative article, I really appreciate this article owner, be cause i have a website I will apply what apply what i have learned from this article to my website
Really very informative and off course detailed post actually….!!